US long-term mortgage rates slip; 30-year average at 4.06%

FILE- In this Feb. 20, 2019, file photo a coming soon for sale sign sits in front of a home in the Dallas suburb of Richardson, Texas. On Thursday, May 23, Freddie Mac reports on this week’s average U.S. mortgage rates. (AP Photo/LM Otero, File)

WASHINGTON (AP) -- U.S. long-term mortgage rates fell slightly this week, marking a fourth straight week of declines to lure prospective purchasers in the spring homebuying season.

Mortgage buyer Freddie Mac said Thursday the average rate on the 30-year, fixed-rate mortgage slipped to 4.06% from 4.07% last week. By contrast, a year ago the benchmark rate stood at 4.66%.

The average rate for 15-year, fixed-rate home loans declined this week to 3.51% from 3.53% last week.

The U.S.-China trade war continued to fester this week, with negotiations on hold after the Trump administration slapped new tariffs on $200 billion in Chinese imports and Beijing retaliated with tariffs on $110 billion of U.S. products.

Investors appear to be bracing for the trade dispute to become entrenched, and stock prices have fallen sharply around the globe in a continued volatile market. Investors are concerned that a prolonged trade war could hurt the U.S. economy and corporate profits, and they continue to shift money from volatile stocks to the bond market.

Bond yields fall as prices rise. The yield on the 10-year Treasury note, which influences mortgage rates, was 2.38% late Wednesday, close to 2.37% a week earlier. But it dropped to 2.33% Thursday morning, its lowest level in more than a year.

With mortgage rates at historically low levels, prospective homebuyers have been rushing in. Applications for mortgage loans jumped 2.4% in the week ended May 17 from a week earlier, according to the Mortgage Bankers Association.

Freddie Mac surveys lenders across the country between Monday and Wednesday each week to compile its mortgage rate figures.

The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates.

The average fee on 30-year fixed-rate mortgages was unchanged this week at 0.5 point.

The average fee for the 15-year mortgage held at 0.4 point.

The average rate for five-year adjustable-rate mortgages rose to 3.68% from 3.66% last week. The fee remained at 0.4 point.